West Side Campaign Against Hunger (A Program of West Side Center for Community Life, Inc.)

Transcription

1 (A Program of West Side Center for Community Life, Inc.) Financial Statements June 30, 2018 and 2017

2 Board of Directors West Side Center for Community Life, Inc. Independent Auditors' Report We have audited the accompanying financial statements of West Side Campaign Against Hunger ( WSCAH ), a Program of West Side Center for Community Life, Inc., which comprise the statements of financial position as of June 30, 2018 and 2017, and the related statements of activities, functional expenses and cash flows for the years then ended, and the related notes to the financial statements. Management s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors Responsibility Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of West Side Campaign Against Hunger, a Program of West Side Center for Community Life, Inc., as of June 30, 2018 and 2017, and the changes in its net assets and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America. October 29, 2018 PKF O CONNOR DAVIES, LLP 665 Fifth Avenue, New York, NY I Tel: or I Fax: I PKF O Connor Davies, LLP is a member firm of the PKF International Limited network of legally independent firms and does not accept any responsibility or liability for the actions or inactions on the part of any other individual member firm or firms.

3 Statements of Financial Position June ASSETS Cash and cash equivalents $ 842,553 $ 1,087,631 Grants receivable 478, ,095 Prepaid expenses and other assets 4,924 4,024 Property and equipment, net 392, ,473 $ 1,717,884 $ 1,735,223 LIABILITIES AND NET ASSETS Liabilities Accounts payable and accrued expenses $ 121,447 $ 50,698 Net Assets Unrestricted 1,591,850 1,489,474 Temporarily restricted 4, ,051 Total Net Assets 1,596,437 1,684,525 $ 1,717,884 $ 1,735,223 See notes to financial statements 2

4 Statements of Activities Year Ended June 30, 2018 Year Ended June 30, 2017 Temporarily Temporarily Unrestricted Restricted Total Unrestricted Restricted Total SUPPORT AND REVENUE Foundation grants $ 493,999 $ 427,000 $ 920,999 $ 367,600 $ 634,500 $ 1,002,100 Individual contributions 386, , , ,288 Grants from religious and other institutions 122, , , ,734 Legislative grants 3,500-3,500 3,500-3,500 Corporation grants 47,902-47,902 20,075-20,075 Donated food 1,419,876-1,419,876 1,128,110-1,128,110 Donated space 85,782-85,782 34,439-34,439 Donated professional services 88,389-88, , ,011 Special events, net of direct costs of $24,148 and $16, , , , ,939 Government grants 721, , , ,047 Interest income 2,805-2,805 3,267-3,267 Other 3,528-3,528 2,816-2,816 3,766, ,000 4,193,314 3,101, ,500 3,736,326 Net assets released from restrictions 617,464 (617,464) - 604,122 (604,122) - Total Support and Revenue 4,383,778 (190,464) 4,193,314 3,705,948 30,378 3,736,326 EXPENSES Programs 3,796,692-3,796,692 3,125,109-3,125,109 General and administrative 194, , , ,851 Fundraising 290, , , ,032 Total Expenses 4,281,402-4,281,402 3,601,992-3,601,992 Change in Net Assets 102,376 (190,464) (88,088) 103,956 30, ,334 NET ASSETS Beginning of year 1,489, ,051 1,684,525 1,385, ,673 1,550,191 End of year $ 1,591,850 $ 4,587 $ 1,596,437 $ 1,489,474 $ 195,051 $ 1,684,525 See notes to financial statements 3

5 Statement of Functional Expenses For the Year Ended June 30, 2018 Programs General Food Social Service Mobile Total and Pantry Counseling CHEF Food Pantry Programs Administrative Fundraising Total Salaries $ 242,297 $ 443,021 $ 117,927 $ 239,208 $ 1,042,453 $ 92,182 $ 184,153 $ 1,318,788 Payroll taxes and benefits 81, ,706 34,305 64, ,309 38,594 49, ,745 Professional fees 4,901 27,781 11,063 27,869 71,614 17,027 11, ,551 Donated professional fees ,389 88, ,389 Food 359,256-11,832 62, , ,579 Donated food 1,177, ,279 1,418, ,418,276 Occupancy 31,867 51,162 12,334 21, ,848 12,142 16, ,179 Donated space 6,039 11,759 2,543 58,767 79,108 2,860 3,814 85,782 Equipment 2, ,096 20,418 25, ,017 Volunteer incentives 13,348-1,910-15, ,258 Transportation ,721 2,662 3,687-6,349 Printing and supplies 12, ,110 6,526 26, ,725 Communications 4,609 6,081 2,373 3,419 16,482 1,265 1,687 19,434 Audit 3,401 6,623 1,432 2,685 14,141 1,611 2,148 17,900 Computer services 9,039 17,603 3,806 7,136 37,584 4,282 5,709 47,575 Miscellaneous 3,698 8,923 2,409 3,859 18,889 15,041 7,416 41,346 Depreciation 11,877 23,128 5,001 9,376 49,382 5,626 7,501 62,509 Total $ 1,966,738 $ 756,838 $ 215,189 $ 857,927 $ 3,796,692 $ 194,317 $ 290,393 $ 4,281,402 See notes to financial statements 4

6 Statement of Functional Expenses For the Year Ended June 30, 2017 Programs General Food Social Service Mobile Total and Pantry Counseling CHEF Food Pantry Programs Administrative Fundraising Total Salaries $ 277,138 $ 356,907 $ 87,686 $ 89,549 $ 811,280 $ 71,763 $ 159,355 $ 1,042,398 Payroll taxes and benefits 86, ,154 27,063 27, ,175 22,148 49, ,506 Professional fees 19,464 17,855 3,099 28,701 69,119 43,782 6, ,098 Donated professional fees 37,517 47,842 11,754 12, ,117 24,115 21, ,011 Food 457, , ,499 Donated food 1,128, ,128, ,128,110 Occupancy 37,166 46,213 12,281 11, ,255 9,008 10, ,423 Donated space 9,917 12,646 3,107 3,173 28,843 2,583 3,013 34,439 Equipment 4,451-4,451-8, ,902 Volunteer incentives 18,344-10,905-29, ,999 Transportation 853 1, , ,180 Printing and supplies 11,046-2,993-14,039 1,232 1,437 16,708 Communications 5,408 8,089 1,987 2,029 17,513 3,928 12,010 33,451 Audit 6,411 3,848 1,283 1,283 12,825 1, ,250 Computer services 8,165 10,413 2,558 2,613 23,749 2,127 2,481 28,357 Miscellaneous 2,176 6,642 1,007 1,028 10,853 9,529 9,815 30,197 Depreciation 14,819 18,898 4,643 4,741 43,101 3,860 4,503 51,464 Total $ 2,124,804 $ 640,594 $ 175,084 $ 184,627 $ 3,125,109 $ 195,851 $ 281,032 $ 3,601,992 See notes to financial statements 5

7 Statements of Cash Flows Year Ended June CASH FLOWS FROM OPERATING ACTIVITIES Change in net assets $ (88,088) $ 134,334 Adjustments to reconcile change in net assets to net cash from operating activities Depreciation 62,509 51,464 Change in operating assets and liabilities Grants receivable (13,048) (254,084) Prepaid expenses and other assets (900) (1,600) Accounts payable and accrued expenses 70,749 4,420 Net Cash from Operating Activities 31,222 (65,466) CASH FLOWS FROM INVESTING ACTIVITIES Purchases of property and equipment (276,300) (7,219) Net Change in Cash and Cash Equivalents (245,078) (72,685) CASH AND CASH EQUIVALENTS Beginning of the year 1,087,631 1,160,316 End of the year $ 842,553 $ 1,087,631 See notes to financial statements 6

8 Notes to Financial Statements June 30, 2018 and Organization and Tax Status West Side Campaign Against Hunger ( WSCAH ) is a program of West Side Center for Community Life, Inc. ( WSCCL ). WSCAH is funded by a combination of government and private sources. Funding is also provided by foundations, corporations, religious institutions and individual contributions. WSCCL operates WSCAH on the premises of the Church of St. Paul and St. Andrew United Methodist (the Church ), partially in a condominium unit owned by WSSCL, in space leased from the Church in Manhattan and from the City Meals owned warehouse space in the Bronx. WSCAH provides food, social service counseling, wellness and mobile food pantry programs. Organized as a supermarket, the Food Pantry provides low income households with food for nine meals each month. Social service counsellors assess each household's need, and refer clients to social service agencies for additional support services. A daily Wellness Program encourages customers to adopt a healthy lifestyle, providing nutrition education and cooking demonstrations. The Mobile Food Pantry Program, which was initiated during the year ended June 30, 2017 and fully operational during fiscal 2018, partners with other community based non-profits, health centers, senior centers and Churches to bring the customer choice model to their clients and reach more people in need. The program targets specific areas of need within the South Bronx and North Manhattan to bring customers more fresh produce and healthy plates. Through its supermarket-style food pantry and now a mobile food pantry, WSCAH alleviates hunger and creates a culture that promotes self-reliance and works for change. WSCCL is exempt from income taxes under Section 501(c)(3) of the Internal Revenue Code. Government Funded Programs Include: New York State Hunger Prevention and Nutrition Assistance Program (HPNAP): HPNAP, in partnership with emergency food relief organizations, is dedicated to improving the health and nutrition status of people in need of food assistance in New York State. New York City Department of Youth and Community Development (DYCD): DYCD administers Community Service Block Grants. Funds are awarded to communitybased organizations to assist low-income persons overcome barriers to meaningful participation in society. New York City Human Resource Administration Emergency Food Assistance Program (EFAP): EFAP aids emergency food relief organizations by providing food and administrative funds to not for profit food pantries and soup kitchens certified by New York City. Emergency Food and Shelter Program (EFSP): EFSP supplements the work of local social service agencies assisting people in need of emergency food and shelter. 7

9 Notes to Financial Statements June 30, 2018 and Summary of Significant Accounting Policies Basis of Presentation and Use of Estimates The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP), which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Accordingly, actual results could differ from those estimates. Net Asset Presentation Unrestricted net assets include funds having no restriction imposed by donors as to use or purpose. Temporarily restricted net assets are those whose use is limited by donors to a specific time period or purpose. Permanently restricted net assets are limited by donors for investment in perpetuity. At June 30, 2018 and 2017, there were no permanently restricted net assets. Cash and Cash Equivalents Cash and cash equivalents include all highly liquid investments with maturities of three months or less when purchased and consist principally of funds maintained in checking and time deposit accounts. Contributions Contributions received, including unconditional promises to give, are recognized as income in the period received at their fair values. Contributions are recorded as restricted income if they are received with donor stipulations that limit the use of the donated assets. When a donor restriction expires, that is, when a stipulated purpose restriction is accomplished, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statements of activities as net assets released from restrictions. Government Grants Federal, state and other grant awards received for specific purposes are recognized as support and revenue to the extent related expenses are incurred in compliance with the specific grant terms. Any unexpended funds are considered refundable advances and are reported as advances payable. Property and Equipment Property and equipment are stated at cost. Costs incurred for repairs and maintenance are charged to expense as incurred. Purchases above $1,000 that WSCAH retains title to and which benefit future periods are capitalized at cost, or if donated, at the estimated fair value at the time of donation. Depreciation is recognized on a straight line basis over the useful lives of such assets as follows: Furniture and equipment Leasehold improvements 3-10 years Life of lease or useful life if shorter 8

10 Notes to Financial Statements June 30, 2018 and Summary of Significant Accounting Policies (continued) Donated Goods and Services WSCAH receives donated goods and services from various sources for use in its programs and activities. The goods and services are stated at fair value when acquired based on what the cost would have been if WSCAH purchased them. These amounts have been reflected as revenue and expenses in the statements of activities. Donated services rendered by volunteers are not recorded as revenue and expenses because they do not meet the criteria for recognition in the financial statements. Donated services recognized in the accompanying financial statements represent pro-bono legal services provided to WSCAH and amounted to $88,389 and $155,011 for the years ended June 30, 2018 and Allocation of Expenses The costs of providing programs and other activities have been summarized on a functional basis in the statements of activities. Accordingly, certain costs have been allocated among the programs and supporting services benefited. Such allocations are determined by management in accordance with grant provisions or by another equitable basis. Allowance for Doubtful Accounts An allowance for doubtful accounts is established for uncollectible amounts. The determination of this allowance is an estimate based on WSCAH s historical experience, review of account balances and expectations relative to collections. Accounting for Uncertainty in Income Taxes WSCCL recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Management has determined that WSCCL had no uncertain tax positions that would require financial statement recognition or disclosure. WSCCL is no longer subject to examinations by the applicable taxing jurisdictions for tax years prior to fiscal Subsequent Events Evaluation by Management Management has evaluated subsequent events for disclosure and/or recognition in the financial statements through the date that the financial statements were available to be issued, which date is October 29,

11 Notes to Financial Statements June 30, 2018 and Grants Receivable Grants receivable are deemed to be fully collectible by management and consist of the following at June 30: Helmsley Charitable Trust $ - $ 150,000 Robin Hood 125, ,000 Single Stop USA 150,000 52,500 New York Hunger Prevention and Nutrition Assistance Program 52,851 21,610 Department of Youth and Community Development 115,190 35,985 Emergency Food and Shelter Program - 23,000 Department for the Aging 3,500 3,500 Others 31,602 28,500 $ 478,143 $ 465, Property and Equipment Property and equipment consist of the following at June 30: Furniture and equipment $ 206,028 $ 157,859 Truck - Mobile Food Pantry 218,045 - Leasehold improvements 401, , , ,226 Accumulated depreciation (433,262) (370,753) $ 392,264 $ 178,473 During fiscal 2017, WSCAH disposed of $5,524 of fully depreciated assets. 5. Temporarily Restricted Net Assets Temporarily restricted net assets of $4,587 and $195,051 are available for food and staff services at June 30, 2018 and Net assets of $617,464 and $604,122 were released from donor restrictions by incurring expenses satisfying the food and staff services restricted purposes during the years ended June 30, 2018 and

12 Notes to Financial Statements June 30, 2018 and Concentration of Credit Risk WSCAH maintains cash in bank accounts which at times may exceed federally insured limits. This potentially subjects WSCAH to a concentration of credit risk. WSCAH has not experienced any losses in such accounts. Reimbursement for the services provided by WSCAH is received through various governmental agencies. WSCAH is economically dependent on these funds to continue operations. 7. Related Party Transactions WSCAH occupies part of its premises pursuant to an operating lease agreement between WSCCL and the Church that is renewed annually in January. Rental expense, excluding donated space, for the years ended June 30, 2018 and 2017 was $113,400 and $104, Subsequent Event On October 11, 2018, WSCAH entered into an $85,000 line-of-credit agreement with TD Bank (the Bank ). The line-of-credit agreement shall continue in full effect until such time both WSCAH and the Bank mutually agree to terminate the agreement. Any amounts drawn down on the line-of-credit will be payable upon demand from the Bank and will require monthly payments of interest based on the Prime Rate as shown in The Wall Street Journal. Through October 29, 2018, WSCAH has not made any drawings against this facility. * * * * * 11